TheMarketMessenger is a provider of Stock Picks, Options Picks and Market Analysis for Swing Traders and Investors.

 
Market Commentary Stock Picks Options Picks Model Portfolio The Study Free Services

 

Email:

 

Long Calls (Bullish Options Strategy)

The Long Calls strategy is the most basic options strategy and it involves the buying of Call 

options - at an appropriate strike price and of an appropriate expiration term. 

A Call buyer almost always possesses a bullish bias towards near term action on the underlying asset. Often, s/he also desires an expansion, or at least stability, in the level of implied volatility on the relevant options.

While a bullishly biased trader (and possibly even a trader with a neutral bias) can finesse his/her level of aggression in the trade by choosing calls that possess a preferred state of moneyness, a bearishly biased trader will not find much use for this strategy.

Read more...

Negative Divergence on Weekly MACD

(4/23/10) This is an update to the situation on the weekly chart of the S&P-500, which is our current 'Chart In Focus.'.

The potential negative divergence on MACD, on the chart of SPX, was first highlighted five weeks ago. The sell signal had not completed itself at that point and it actually still hasn't. But, strictly speaking, it has not become defunct as yet, as well.

Until/unless MACD makes a new high (surpasses the peak made in January), the divergence will continue and, as such, traders need to be prepared for the ramifications of the sell signal, were it to be confirmed. A confirmation will take place if/when MACD breaks below the intervening trough (see thin line drawn in MACD pane on chart). 

Read More...

Model Portfolio Up 100% in 18 months The past 18 months have been amongst the most challenging in recent memory. However, our model portfolio...

SPECIAL: Two-week FREE PASS A two-week FREE PASS is now available - please hurry, because it's valid ONLY from May 6th to 20th...

CNBC might be saying that the selling is over, but... There are several hints that further downside action may be in-the-offing. Let's briefly discuss each of them:...

Teaser: Upcoming Options Education Program  More details will follow soon. In the meantime, here's a sampling of the types of diagrams that will be utilized in the video presentations to the class...

Short Christmas Tree with Calls, Puts: Options Trading Strategy Now, not all of you might be familiar with the Short Christmas Tree strategy, which can be considered an intermediate to advanced strategy, so here's a primer to help provide a bit of an understanding...

Negative Divergence On Weekly MACD The potential negative divergence on MACD, on the chart of SPX, was first highlighted five weeks ago. The sell signal had not...

Nasdaq-100 Bull Flag Target Accomplished  The Nasdaq-100 formed a bull flag in the first week or March and broke out of that flag later that week. The flagpole had measured 80 points. Projecting that distance from the breakout point of 1860, a target of 1940 was derived...

Go to blog...

TheMarketMessenger is a provider of Stock Picks, Options Picks and Market Analysis for Swing Traders and Investors.

Username

Password

 

Remember Me